scared of bankruptcy

October 28th, 2008 by Questions

my divorce has left me struggling to keep my head above water. my line of credit and credit card is maxed. i used them to pay legal costs. and became unemployed so it helped me to live and pay bills until i found employement. i am embarrassed to even consider bankruptcy. but as the days go by i find i am unable to keep up. its causing a great deal of stress. i am about to get laid off for the winter months.. what i need to know is… can i avoid going bankrupt( i will not run away away from my debts if i dont have to, they are my responsibility, not someone elses) but at the same time unemployment until i find another job wont exactly keep me afloat…. i am $22,000 in the hole from combined line of credit and credit card. is this amount manageable?

Posted from: Manitoba


One Response to “scared of bankruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The answer to your quesiton is entierly dependent on your cash flow. There is something called a consumer proposal and it would likely allow you to use a formalized, court sanctioned process to negotiate your debt down to more reasonable levels. The trick is do they fit into your cash flow.

At this point I think you are best to bring in a list of what you make and what you spend to a local trustee and they will help you determine if a consumer proposal would be possible and if so what the estimated amount you would have to offer to your creditors is.

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